ATM burden on banks

This has reference to ‘Cassette swap norms: After RBI’s refusal, banks seek FM’s intervention’ (November 5). Since demonetisation, managing and maintaining ATMs have become a costly exercise for banks. More than 2.2 lakh ATM machines had to be recalibrated at a huge cost, for which no compensation was paid by the Centre.

Within a year since demonetisation, the RBI introduced ₹200 notes into the market and the banks had to again reconfigure the cassettes and recalibrate the machines, involving capital expenditure, manpower and time. Even today, one hardly finds ₹200 in ATMs, which are filled with other higher denomination notes only. Due to non-availability of adequate cash and security concerns, the ATMs which were seen operating 24x7 now function only from 8 am to 6 pm in most semi-urban and rural centres. ATMs, which were once looked upon by banks as an effective tool to reduce transaction time in branches, have become a ‘white elephant’ due to outdated machines, cash shortage and outsourcing issues. In fact, many banks prefer to serve their customers’ cash requirements in their own branches, than replenishing ATMs, which are used by other banks’ customers as well.

Millions of ATM cards were issued as part of PMJDY and financial inclusion. Due to paucity of time then, magnetic swipe debit cards were issued instead of the secured chip-based cards. Now, the RBI has made it mandatory that magnetic swipe cards be replaced with chip-based ones. Neither the regulator nor the government consulted banks before the introduction of new guidelines on ATMs. The RBI’s latest guidelines on cassette swap norms, involving a cash outlay of ₹6,500 crore and complex operational issues, only affirm that view.

Coimbatore

This is with reference to the report ‘US-China trade war may drive American auto-parts business the India way’ (November 5). The Indian auto-parts industry would do well to pay heed to the saying “opportunity does not knock twice”. This is the best time for the industry to prove its superiority/capability. The auto-parts industry should rise to the occasion and meet the demands of the US in an amicable manner so that the US will always look to our industry in the future. The government should give the right support to the auto-parts industry so that it can meet the US demand. This will help the industry get a permanent market in the US and, thereby, also create employment opportunities for our youth. India is the only country which can challenge China’s supremacy in the coming years. Hence we should consider this trade rift between China and the US as an opportunity and take full advantage of the same.

Thane

With reference to ‘IRDAI panel suggests excluding 17 ailments from medical cover’ (November 5), it goes without saying that a standardised list of just 17 pre-existing diseases that could be excluded from health insurance policies is a step in the right direction. Significantly, the diseases proposed in the ‘standardised’ list have, more often than not, remained a major bone of contention at the time of claim settlement by the insurers in the wake of a whole lot of scope for some “subjective interpretation”. However, the panel’s proposal that new treatments such as balloon sinuplasty, deep brain stimulation, oral chemotherapy, immunotherapy, robotic surgeries, and stem cell therapy may be included in health cover could come as big relief for a large chunk of the patients needing such a treatment.

Interestingly, while the panel has recommended the ‘doubling’ of the waiting period for inclusion of any ailments in health cover as against the current average two-year period, it has also said that the waiting period should not be more than 30 days for conditions such as hypertension, diabetes and cardiac problems. Further, the IRDAI should also look into various instances of wrongful denial of the inherent benefits taking shelter behind some ‘technicalities’ despite being eligible under medical insurance policies.

New Delhi

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